Fist time real estate investor!

Starting Out
5yFollow

Fist time real estate investor!

Sam Mukunda
Member since 2021 · 2 posts · 11 votes

Hi,

I am just getting started in the real estate investments for diversification and for my FIRE goals! I am currently in california, and i want to buy cheaper rental properties in places like Ohio, Virginia,Texas, Vegas...etc.. I want to start with 1property, and i will be dependent on property manager to manage everything as i will be out of state. 

What recommendations do you guys have in terms of deciding the final zipcode for my 1st rental investment ?

My goal is to find something less that 150k and aim to get atleast 1% in monthly rents. 

Appreciate your help!  

5Reply
22 views

Most Popular Reply

Marc RiceBusiness Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
5y

@Sindhu Mukunda

The most important thing is finding a local team who can help you with finding the deal, stabilizing the deal, and managing it (agent, lender, contractor, property manager).

There are a lot of Midwest markets that you can meet that criteria in. Some will offer better cash flow and less appreciation than others. I personally invest in Columbus, Ohio and have had good results.

Best of luck!

[email protected]614-363-2787
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
WebsiteView Page
4Reply
See this reply in the discussion

8 Replies

Jump to latestLatest
  • Marc RiceBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
    5y

    @Sindhu Mukunda

    The most important thing is finding a local team who can help you with finding the deal, stabilizing the deal, and managing it (agent, lender, contractor, property manager).

    There are a lot of Midwest markets that you can meet that criteria in. Some will offer better cash flow and less appreciation than others. I personally invest in Columbus, Ohio and have had good results.

    Best of luck!

    [email protected]614-363-2787
    Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
    WebsiteView Page
    4Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    5y
    Originally posted by @Sam Mukunda:

    Hi,

    I am just getting started in the real estate investments for diversification and for my FIRE goals! I am currently in california, and i want to buy cheaper rental properties in places like Ohio, Virginia,Texas, Vegas...etc.. I want to start with 1property, and i will be dependent on property manager to manage everything as i will be out of state. 

    What recommendations do you guys have in terms of deciding the final zipcode for my 1st rental investment ?

    My goal is to find something less that 150k and aim to get atleast 1% in monthly rents. 

    Appreciate your help!  

    I recommend you read this article on OOS investing. It explains the importance of creating your core four. You will need to get a local, rockstar Realtor, contractor, lender, and property manager.

    https://www.biggerpockets.com/blog/core-four-real-estate-team

    I invest locally in Columbus, Ohio

    [email protected]614-541-8475Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
    Reafco512 Reviews
    WebsiteView Page
    3Reply
  • Joseph Schweizer
    Investor · Member since 2020 · 291 posts · 592 votes
    5y

    Hi @Sam Mukunda!

    Have you explored the option of using a turnkey provider? If not, it might be an option you want to at least explore. There are obviously pros and cons to every type of real estate investing, but turnkey may be a good way for you to get started. It would also help you narrow down your markets because you would be limited to markets the providers operate in. 

    I went with a turnkey property for my first investment (see post below) and I learned a lot from actually purchasing an investment property.

    https://www.biggerpockets.com/forums/850/topics/895660-my-first-investment-property-an-out-of-state-deal

    Best Wishes!

    0Reply
  • Blake ParkBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 126 posts · 121 votes
    5y

    @Sindhu Mukunda

    Those are great goals and I believe you can find that 1% in the midwest. I personally invest in Columbus and have had a lot of fruit from it.

    [email protected]614-762-9232
    1Reply
  • Zeke Liston
    Real Estate Agent · Columbus, OH · Member since 2018 · 1k+ posts · 1k+ votes
    5y
    Originally posted by @Sam Mukunda:

    Hi,

    I am just getting started in the real estate investments for diversification and for my FIRE goals! I am currently in california, and i want to buy cheaper rental properties in places like Ohio, Virginia,Texas, Vegas...etc.. I want to start with 1property, and i will be dependent on property manager to manage everything as i will be out of state. 

    What recommendations do you guys have in terms of deciding the final zipcode for my 1st rental investment ?

    My goal is to find something less that 150k and aim to get atleast 1% in monthly rents. 

    Appreciate your help!  

    Hi Sindhu, I would recommend checking out Columbus, OH! You can also find good cash flow in Cleveland and Cincinnati. 

    2Reply
  • Joshua Noth
    Real Estate Agent · Austin, TX · Member since 2020 · 338 posts · 296 votes
    5y

    Hey there @Sam Mukunda,

    For finding your final area, so much depends on what criteria you find important. If all you need is 150k or under and achieving 1% cash flow, then run some quick and easy analyses in cities and see if they work.  If not, don't try to force it, and look elsewhere - that's one of the great things about OOS investing.  If you have other criteria to look for, use whatever resources you can, whether it's vacancy rates, migration trends, etc.

    Once you have that, developing that "Core 4" as others have mentioned is crucial.  From there, working with those will make the process much smoother and informed for you. Best of luck to you!

    1Reply
  • Brandon GoldsmithBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    Those goals are pretty achievable in a lot of markets. I would start to narrow down a few submarkets of each state and then trying to start building out a team from there. Having a good team in place will be the reason for success in OOS investing. @Sam Mukunda

    [email protected]614-963-3340
    0Reply
  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
    5y
    Originally posted by @Sam Mukunda:

    Hi,

    I am just getting started in the real estate investments for diversification and for my FIRE goals! I am currently in california, and i want to buy cheaper rental properties in places like Ohio, Virginia,Texas, Vegas...etc.. I want to start with 1property, and i will be dependent on property manager to manage everything as i will be out of state. 

    What recommendations do you guys have in terms of deciding the final zipcode for my 1st rental investment ?

    My goal is to find something less that 150k and aim to get atleast 1% in monthly rents. 

    Appreciate your help!  

     Can do that in the Cleveland area for about half that budget. 

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free